Bitcoin's Strong August Rally Raises Concerns of September Correction
Bitcoin has ended August with a strong 24% gain, reaching $81,455 after starting the month around $60,000. The cryptocurrency's surge was fueled by increased institutional demand and the U.S. Treasury doubling its long-term bond buybacks from $2 billion to at least $4 billion per operation.
Historically, September has been a weaker period for Bitcoin, with an average return of -3%. CoinGlass data shows that in several years, including 2013, 2017, and 2020-2021, Bitcoin posted strong gains in July and August only to see a correction in September.
Crypto analyst Crypto Rover noted that Bitcoin has formed a bullish cross between its 50-day and 100-day moving averages. However, this signal was also present in January 2023, when Bitcoin dropped 17% before eventually gaining 546%. Another trader, Ted Pillows, expects Bitcoin to target $88,000-$90,000 if it reclaims the 50-week moving average.